MIRA INFORM REPORT
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Report Date : |
02.07.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG YANGKANG ELECTRONICS CO., LTD. |
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Registered Office : |
No. 335 West Ningkang Road, Yuecheng Town, Yueqing
Zhejiang Province 325600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.05.2000 |
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Com. Reg. No.: |
330382000167824 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturing and selling electronics |
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No. of Employees : |
303 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally
planned system to a more market-oriented one that plays a major global role -
in 2010 China became the world's largest exporter. Reforms began with the
phasing out of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2012 stood as the second-largest economy in the world after
the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. Debt overhang
from the stimulus program, particularly among local governments, and a property
price bubble challenge policy makers currently. The government's 12th Five-Year
Plan, adopted in March 2011, emphasizes continued economic reforms and the need
to increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals
Source
: CIA
Company name and address
ZHEJIANG YANGKANG ELECTRONICS CO., LTD.
NO. 335 WEST NINGKANG ROAD, YUECHENG TOWN, YUEQING
ZHEJIANG PROVINCE 325600 PR CHINA
TEL: 86 (0) 577-62515779/62515377/62515110/62515113
FAX: 86 (0) 577-62515636
EXECUTIVE SUMMARY
Date of Registration : may 26, 2000
REGISTRATION NO. : 330382000167824
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 26,160,000
staff :
303
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 65,283,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 43,444,000 (AS OF DEC. 31, 2012)
WEBSITE : www.yangkang.com
E-MAIL :
yangkang@yangkang.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330382000167824
on May 26, 2000.
SC’s Organization Code Certificate No.:
14555727-2
SC’s Tax No.: 330382145557272
SC’s registered capital: CNY 26,160,000
SC’s paid-in capital: CNY 26,160,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Liyang |
70.26 |
|
Jiang Aixia |
29.74 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Wang Liyang |
|
Supervisor |
Jiang Aixia |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wang Liyang 70.26
Jiang Aixia 29.74
MANAGEMENT
Wang Liyang, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 330323660306003
Ø Qualification:
University
Ø Working experience
(s):
From 2000 to present, working in SC as
legal representative, chairman and general manager
Also working in Wenzhou Yangkang
Electronic Co., Ltd. as legal representative
Jiang
Aixia, Supervisor
-----------------------------------------
Ø Gender: F
Ø Age: 49
Ø ID#
330323640417002
BUSINESS OPERATION
SC’s registered business scope includes manufacturing,
processing and selling radio parts, machinery parts; international trade.
SC is mainly
engaged in manufacturing and selling electronics.
Brand: 
SC’s products
mainly include:
Appliance Inlet
USB Sockets
Tact Switches
Scart Sockets
S-Terminals
Power Switches
Network Interface
(Sockets)
HDMI Sockets
FPC Connectors
Auxiliary Function
Switches and Micro Switches
AV Jack Board (RCA
Jack)
Bar Connectors
Connecting
Terminals
CRT Sockets
DC Power
Jacks,Matching Unit
Earphone Jack
Series
VGA Sockets
Loud Speakers
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 303 staff at
present.
SC owns an area as
its operating office & factory of approx. 24,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have 2
subsidiaries at present,
Wenzhou
Yangkang Electronic Co., Ltd.
Wenzhou
Lidu Real Estate Development Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Bank
of China Yueqing Sub-branch
AC#:
380558332846
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
657 |
11,899 |
|
|
Notes receivable |
9,673 |
2,867 |
|
Accounts
receivable |
24,124 |
26,828 |
|
Advances to
suppliers |
863 |
863 |
|
Other receivable |
34,059 |
50,820 |
|
Inventory |
17,118 |
26,741 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
51 |
|
|
------------------ |
------------------ |
|
Current assets |
86,494 |
120,069 |
|
Long-term
investment |
33,142 |
33,143 |
|
Fixed assets |
20,460 |
18,479 |
|
Construction in
progress |
4,410 |
4,728 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
144,506 |
176,419 |
|
|
============= |
============= |
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Short-term loans |
119,420 |
101,500 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
-28,831 |
-6,768 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
580 |
284 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
10,007 |
36,613 |
|
Accrued expenses |
568 |
1,343 |
|
Other current
liabilities |
393 |
3 |
|
|
------------------ |
------------------ |
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Current
liabilities |
102,137 |
132,975 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
102,137 |
132,975 |
|
Equities |
42,369 |
43,444 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
144,506 |
176,419 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
58,240 |
65,283 |
|
Cost of sales |
50,308 |
60,262 |
|
Taxes and surcharges |
232 |
237 |
|
Sales expense |
90 |
281 |
|
Management expense |
5,861 |
4,480 |
|
Finance expense |
1,067 |
-659 |
|
Non-business
income |
23 |
175 |
|
Non-business expenditure |
225 |
26 |
|
Profit before
tax |
1,110 |
1,393 |
|
Less: profit tax |
277 |
0 |
|
833 |
1,393 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.85 |
0.90 |
|
*Quick ratio |
0.68 |
0.70 |
|
*Liabilities
to assets |
0.71 |
0.75 |
|
*Net profit
margin (%) |
1.43 |
2.13 |
|
*Return on
total assets (%) |
0.58 |
0.79 |
|
*Inventory /
Revenue ×365 |
108 days |
150 days |
|
*Accounts
receivable/ Revenue ×365 |
152 days |
150 days |
|
* Revenue/Total
assets |
0.40 |
0.37 |
|
* Cost of
sales / Revenue |
0.86 |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory, accounts receivable and short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.14 |
|
|
1 |
Rs.90.05 |
|
Euro |
1 |
Rs.77.06 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.